Buying and Selling Behavior

Buying and Selling Behavior

1. People buy to satisfy a want or desire, to solve a problem or satisfy an impulse.

   • Even as a part of the job, the buyers have a desire or need to satisfy.

2. Type of buyers

   • Manufacturers
     • They buy a product or service to finish the manufacture of another product or service.
   • Resellers
     • They buy the finish product with the intention of reselling it at a higher price to the final consumer
   • Government
     • Government buyers typically develop detailed specifications for a product and then invite qualified suppliers to submit bids.
   • Consumers
     • They usually buy a product or service to satisfy a need or desire

3. Buying process

   • Organizations use highly trained, knowledgeable purchasing agents to make these decisions
     • The average time for a transaction is around 5 months
   • There are 8 steps in the buying process:
     • 1) Recognizing a need or problem
     • 2) Defining the type of product or service needed
     • 3) Developing product specifications
     • 4) Searching for qualified suppliers
     • 5) Acquiring and analyzing proposals
     • 6) Selecting the correct supplier
     • 7) Placing the order and receiving the product
     • 8) Evaluating product performance

4. Usually these 8 steps are for institutional buyers and not for regular consumers